Federal News
Congress Reauthorizes SBIR and STTR Programs
March 23, 2026
Congress has reauthorized the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs through fiscal year 2031 via the Small Business Innovation and Economic Security Act. This legislation, effective following presidential signature, introduces significant modifications including enhanced security evaluations for applicants, limits on the number of proposals small businesses may submit annually, and expanded training for acquisition personnel. Notably, it establishes new "Strategic Breakthrough Awards" offering larger follow-on funding—up to $30 million—to support critical technology commercialization. These changes aim to focus federal innovation funding on scalable, mission-critical technologies while curbing volume-based proposal submissions.
- Why this matters: Procurement professionals should anticipate stricter compliance and security requirements for SBIR/STTR applicants, impacting proposal preparation and evaluation processes.
- Agencies will implement caps on proposal submissions per small business, requiring adjustments in solicitation management and outreach.
- The introduction of Strategic Breakthrough Awards signals increased funding opportunities for high-impact projects, encouraging contractors to align proposals with critical technology priorities.
- Small businesses and contractors in innovation ecosystems, especially in regions like Dayton and Miamisburg, Ohio, should prepare for these programmatic shifts to leverage expanded commercialization support.
One of the most significant updates is the introduction of larger follow-on funding opportunities, including new 9 Strategic Breakthrough Awards of up to $30 million.
— Homeland Security Today
Each agency must set a maximum number of proposals per fiscal year that a small business concern may submit in response to Phase I and Phase II solicitations.
— Legislation
Having the SBIR program reauthorized is an exciting and much needed step in protecting the small business innovation ecosystem throughout the United States.
— Chris Hemmelgarn, Chief Technology Officer for CRG Defense
Agencies
Small Business Innovation Research (SBIR) program, Small Business Technology Transfer (STTR) program, U.S. House of Representatives, House Committee on Science, Space, and Technology, Congress
Contracts
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Locations
Sources
- S.3971 - Small Business Innovation and Economic Security Act · congress · Mar 17
- SBIR Reauthorization Advances with New Requirements and Opportunities for Industry - HSToday · Homeland Security Today · Mar 23
- Newly passed SBIR grant program heads to President Trump for his signature. · Dayton Daily News · Mar 23